What is Money Laundering?
Money laundering is how criminals disguise the illegal origins of their money. Financiers of terrorism use similar techniques to money launderers to avoid detection by authorities and to protect the identity of those providing and receiving the funds.
The Anti Money Laundering Act
The Act ensures that businesses take appropriate measures to guard against money laundering and terrorism financing. This enhances the reputation of individual businesses, and of New Zealand as a safe place in which to do business.
The Act came into full force on 30 June 2013, with further amendments in August 2017.
Wide range of entities including Banks, Casinos, Financial Institutions and some Trust and Company Service Providers, Lawyers, Conveyancers, Accountants and Providers of Accounting Services, all are obligated to comply with the law, requiring them to put systems and processes in place to prevent criminals from trying to exploit them, and ensure they can identify their customers, know their addresses and, in some cases, know the sources of their customers’ funds.
The law will be further extended in 2019 to include Real estate agents and Dealers in high value goods and the New Zealand Racing Board.
The Act specifies (Section 59 of the Act) that an entity’s risk assessment and AML/CFT programme must be independently audited every 2 years, or at any other time at the request of the relevant AML/CFT Supervisor. Furthermore, the law stipulates that the audit must be undertaken by an independent person, appointed by the reporting entity.
We at NZ Business Experts Ltd are obligated to comply with Law.
If your organisation or commercial practice is required to comply, or if you are seeking advice on AML compliance requirements, please contact us for further clarification and assistance.